Benchmarks continue upward rally in late afternoon session

The Indian benchmarks continued their upward rally in late afternoon session, with the Sensex and Nifty gaining more than 600 and 190 points, respectively. Sentiments remained upbeat as Directorate General of Foreign Trade (DGFT) has said while October data looked promising for exports, the situation will improve further in the coming months due to collaborative efforts of all the stakeholders. Director General of Foreign Trade Amit Yadav has said since April, when there was a huge downfall in exports, it has made good progress and is going to rise in the coming months. On the sectoral front, automobile industry remained in focus, as ratings agency Icra has said Commercial vehicles (CV) volumes are expected to shrink 25-28 per cent this fiscal (FY21) amid multiple headwinds along with the pandemic impact, and the outlook for the sector remains negative on the back of continuing challenge. In the previous fiscal, CV domestic volumes stood at 7,17,688 units as against an all-time high of 10,07,311 vehicles in 2018-19.

On the global front, all Asian markets are trading higher as investors shrugged off the unresolved U.S. presidential election. European markets were trading higher supported by a handful of strong earnings reports, more stimulus for Britain’s economy, and a surge in Wall Street stocks as the U.S. presidential election race came down to the wire.

The BSE Sensex is currently trading at 41254.68, up by 638.54 points or 1.57% after trading in a range of 41030.17 and 41343.98. There were 30 stocks advancing against 0 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.54%, while Small cap index was up by 1.52%.

The top gaining sectoral indices on the BSE were Metal up by 3.62%, PSU up by 3.29%, Oil & Gas up by 2.84%, Energy up by 2.25% and Bankex was up by 2.10%, while Realty down by 0.61% were the only losing indices on BSE.

The top gainers on the Sensex were SBI up by 5.70%, Tata Steel up by 4.87%, Bajaj Finance up by 4.83%, Bajaj Finserv up by 3.67% and Indusind Bank up by 3.65%.

Meanwhile, with an emphasis on man-made fibre and technical textiles segment, Textiles Secretary Ravi Capoor has said that the government will soon launch a Focused Product Scheme.

Capoor further urged the domestic players to focus on the top 10 technical textile lines globally constituting about USD 82 billion, in which India's share is a miniscule 0.6 per cent. He said that huge benefits will be offered to kick-start these technical textile lines, adding that the government is also looking at setting up a special export promotion council to promote the technical textiles segment.

Textiles Secretary had earlier said the proposed Focused Product Scheme aims to promote both greenfield as well as brownfield investments in the specified segments. Technical textiles include textiles made for automotive applications, medical textiles, geotextiles, agrotextiles and protective clothing, among others.

The CNX Nifty is currently trading at 12110.60, up by 202.10 points or 1.70% after trading in a range of 12027.60 and 12115.25. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were SBI up by 5.94%, BPCL up by 4.94%, Tata Steel up by 4.85%, Bajaj Finance up by 4.82% and Bajaj Finserv up by 4.04%. On the flip side, Hero MotoCorp down by 0.86%, HDFC Life Insurance down by 0.23% and Divis Lab down by 0.05% were the top losers.

All Asian markets are trading higher, Hang Seng increased 809.78 points or 3.25% to 25,695.92, Nikkei 225 surged 410.05 points or 1.73% to 24,105.28, Jakarta Composite soared 155.13 points or 3.04% to 5,260.33, Straits Times advanced 67.71 points or 2.69% to 2,583.69, KOSPI rose 56.47 points or 2.4% to 2,413.79, Taiwan Weighted strengthened 50.90 points or 0.4% to 12,918.80 and Shanghai Composite was up by 42.69 points or 1.3% to 3,320.13.

European markets were trading higher, UK’s FTSE 100 increased 15.39 points or 0.26% to 5,898.65, France’s CAC increased 44.64 points or 0.91% to 4,967.49 and Germany’s DAX was up by 136.18 points or 1.1% to 12,460.40.